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The technology company reported on April 17 first-quarter earnings of $2.78 a share on revenue of $24.67 billion, up from
year-earlier earnings of $2.41 a share on revenue of $24.6 billion.

"While we are disappointed by IBM's flat Q- 1 12 pre-tax income growth, the company's profit growth should improve in the second half of the year as it benefits from its introduction of its new Pure Systems integrated software/hardware solutions (including cloud computing, storage, networking, virtualization, and industry solutions)," Davenport analysts wrote in an April 18 report.